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Intangible Asset Valuation MCP Server

Cost Approach

valuation_cost_approach
Read-onlyIdempotent

Cost approach: depreciated reproduction cost from a cost breakdown and depreciated replacement cost with equivalent utility, both reduced by obsolescence. Method selects the formula. Use when no income or market evidence exists, or to corroborate income and market indications for internally developed intangibles. For income-based indications use valuation_income_methods; for market evidence use valuation_market_approach. Per method: reproduction_cost needs development_costs (optional: obsolescence_factors); replacement_cost needs current_cost (optional: obsolescence_factors). obsolescence_factors values are decimals that are summed and applied to the cost base; omit them for no obsolescence. Only method is required; all other parameters are method-dependent — supply those the selected method names and omit the rest (defaults apply where defined). Rates and premiums are decimals (0.10 = 10%). Pure arithmetic: no I/O and no external calls, rounded to 2 decimals; parameters belonging to other methods are accepted and ignored. An unknown method, or a missing method-required parameter, returns an error instead of a value.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
methodYesFormula to apply. Options: reproduction_cost = Sum of cost categories less total obsolescence.; replacement_cost = Current cost of equivalent utility less obsolescence.
current_costNoCurrent cost to replace the asset with equivalent utility, in currency units.
development_costsNoCost breakdown by category, e.g. {"r_and_d": 1000000, "testing": 250000}, in currency units.
obsolescence_factorsNoObsolescence factors, e.g. {"functional": 0.10, "technological": 0.15, "economic": 0.05}.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
errorNoError message when the call fails.
stepsNoIntermediate calculation steps for traceability (one string per step).
valueYesComputed valuation, rate, or metric.
methodNoFormula / method name that produced the result.
assumptionsNoModelling assumptions applied (list of strings or key/value object).
defaults_appliedNoOptional parameters that were not supplied, so their documented defaults were used.
formula_referenceNoMathematical formula or reference applied.

Schema Changelog

Changes observed during successful MCP inspections.

  1. First observed

TDQS

A4.9/5.0
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnly/idempotent/non-destructive, and the description adds substantial behavior beyond them: pure arithmetic with no I/O or external calls, results rounded to 2 decimals, parameters for other methods being accepted and ignored, and explicit failure modes (unknown method or missing method-required parameter returns an error). That is exactly the kind of context annotations can't carry.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Dense but front-loaded: purpose, usage, alternatives, then per-method parameter rules, then arithmetic/error behavior. The decimal-convention sentence ('rates and premiums are decimals') is slightly redundant since no rate parameter exists, but overall little waste.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a 4-param, nested-object, method-dispatched calculator with an output schema, the description covers everything an agent needs: conditional parameter requirements, defaults, numeric conventions, error behavior, and delegation to siblings. Return values are correctly left to the output schema.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters5/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Despite 100% schema coverage, the schema cannot express the conditional, method-dependent requirements. The description supplies them: reproduction_cost needs development_costs, replacement_cost needs current_cost, obsolescence_factors is optional and its values are summed decimals applied to the cost base with omission meaning no obsolescence, and only method is required.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb and resource: computes the cost approach (depreciated reproduction cost and depreciated replacement cost), with obsolescence reduction. It explicitly names the two competing approaches (valuation_income_methods, valuation_market_approach), so an agent can place it among siblings without opening schemas.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Gives explicit when-to-use ('no income or market evidence exists', or to corroborate indications for internally developed intangibles) and names the exact alternative tools for income and market cases. Nothing is left to inference.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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